Target Jumps, Chinese Shares Slump, Markets Brace for Fed Minutes 8/16/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Jim Cramer (0:31)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:39)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer. At post nine of the New York Stock Exchange, David Faber has the morning off. Pretty soggy pre-market. Dow is coming off the worst day since July.

Target, TJX moving the retail earnings ball along and the 10-year still elevated at 422 Cisco tonight. Our road map begins with Target up sharply as in earnings beat offsets this sales miss and the lowered guidance. Regional banks looking to rebound the day after Minneapolis Fed President Kishkari's comments on capital requirements and concerns about the China slowdown weighing on that country's stocks, including jd.com, which did have some pretty strong results.

Let's begin though with Target. Mixed results, lowered guidance, Jim, negative comps, inventory, down 17 There's something for everybody in this.

Jim Cramer (1:27)

When you speak to Brian Cornell, it's one thing. He's obviously disappointed in same store sales because we were looking for a minus 3.7. He came in minus 5.4. He does not like to miss that number. I will tell you this. When you see inventories down, that means there's no promotion coming up. So that means things will be okay. The forecast wasn't exactly what I wanted. But one of the things that Brian did is he's just getting these incredible gross margins.

He knows what people want. They just don't want the big stuff. And remember, he's built this gigantic $30 billion private label business, which I just love. And we always go back and forth because I shopped there with my daughter and I always comment on them and what it's like.

And one thing, they've got the best clothing, but that's not where you're going to crush it with same store. So, and food was okay, Ulta was very good, CVS was very good. The Starbucks and Starbucks pick up on the curbside while you get your goods, very good.

Overall, I think this stock was down so much that it looked up to people.

Carl Quintanilla (2:28)

You know what's getting a lot of the buzz this morning off the call is these metrics on theft-related, violent-related theft. 120% in the first five months of the year.

Jim Cramer (2:38)

Yeah, so let's get it. Since 2019, the overall shortage shrinkage at retail target has increased by nearly 100%, which is really staggering. A lot of it, Brian will say, is organized crime. The retail crime rate has increased by approximately 50%, but it is the violent that is so disturbing. Now, just so people in here, they feel, they hear shrinkage, they're trying to wonder where it comes from. The crimes are gift cards and refund fraud extensively. That's where you see a lot of what's going on.

The stores have 120% increase in theft incidents involving violence. Now, Brian has been leading the federal clause to try to get it so that somehow he doesn't have to become, his cashier's done it to become a policeman because he won't let them.

He cares more about the health and safety when you speak to him, it comes up first, even before you talk about pilferage. And what can I say? I think he's doing an incredible job in a situation where unless you're a total Ollies aficionado or we'll get to TJX, which I happen to love our sticks, do I have a guy who actually says, Jim, I know what you're looking for.

Carl Quintanilla (3:49)

You have a personal shopper.

Jim Cramer (3:50)

I have a personal shopper, TJX. He knows that I have 31 waist now. He says, I've got the best jeans. And we got this stretch jeans that he knows I love.

I mean, like I got there, they're $14. I've seen them at $140 at Full Price Alphas. So I was talking to my colleague, Jeff Marks, this morning from the club.

He's never been to TJX, which I find frightening. It's right next door.

Carl Quintanilla (4:11)

So he and David should get together.

Jim Cramer (4:14)

Well, David doesn't know what a TJX is. What's so great is that-

Carl Quintanilla (4:17)

Thinks it's an airport code.

Jim Cramer (4:18)

True. Yeah, I know. It's like San Antonio. And when you go, there's a snake at the register. I swear, half the things you buy will be at the snake.